StonMore, Inc. (STON) stock prices were down by a marginal 3.00% as of the market closing on May 10th, 2021, bringing the price per share down to USD$2.59 at the end of the trading day.
STON Acquires More Assets
The operator of a myriad of funeral homes and cemeteries under its ownership announced on March 24th, 2021 that it had entered into a definitive agreement in regard to the acquisition of an additional four cemeteries. Located in the East Coast geographic footprint, the cost of acquisition of these assets was USD$5.395 million with an expected closing date of July 2021.
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Promising Financial Reports
STON concurrently also disclosed its financial results for Q4 2020 and the year ended December 31st, 2021. Revenues for the fourth quarter of the fiscal year 2020 were USD$58.3 million, with Q4 2021 having seen a substantial surge to bump revenues up to UD$74.9 million. Full-year revenues were also up, from USD$257.2 million in 2019 to USD$2279.5 million in 2020.
Operating Income Reports
While Q4 2019 reported an overall operating loss of USD$0.6 million, Q4 2020 saw a cemetery segment operating income of USD$10.9 million, up a promising USD$11.5 million. The operating income for the full-year cemetery segment was USD$35 million in 2020, a USD$27-million-dollar improvement over the USD$8 million reported for 2019.
Corporate Overhead Expense Reports
STON also saw its corporate overhead expenses go from UDS$13 million in Q4 2019 to USD$9 million in Q4 2020. Yearly corporate overhead expenses for 2019 amounted to USD$51.1 million, with 2020 reported USD$36 million.
Operating Income Reports
Operating income for Q4 2020 was USD$3.4 million, a massive improvement on the operating loss of USD$17.4 million in Q4 2019. 2020 also saw significant increases overall as compared to 2019, with a full-year operating income of USD$3.3 million in 2020 versus a full-year operating loss of USD$47.9 million in 2019.
Net Loss Dwindles Down
Q4 2020 reported a net loss of USD$5.7 million from continuing operations, while Q4 2019 had reported USD$52.4 million. The full-year net loss from continuing operations in 2019 was USD$154.7 million, with 2020 reporting a net loss from continuing operations of USD$37.3 million.
STON’s Liquidity
In light of such stellar financial reports, STON had USD$60.1 million in cash as of December 31st, 2020 against a total debt of USD$321 million. Of their cash reserves, USD$20.8 million is restricted cash. Q4 2020 saw USD$4.9 million being generated in unlevered free cash flow, while the value of STON trust assets increased by USD$45.6 million. The company also announced on April 23rd, 2021 the pricing for its USD$400 million aggregate principal amount of its 8.5% Senior Secured Notes due 2029.
Future Outlook for STON
With such a consolidated financial position, STON continues to strive towards leveraging the resources at their disposal to facilitate further long-term growth. Current and potential investors are hopeful that the company will be able to usher in significant and sustained increases in shareholder value.
